Which of the following statements is true?
A) In a competitive market, the invisible hand encourages the movement of resources from more productive uses to less productive uses.
B) In a competitive market, firms in the long run tend to earn positive economic profits.
C) Competitive equilibrium provides incentives for entrepreneurs to shift their resources from unprofitable industries to profitable ones.
D) At the competitive equilibrium, production occurs at the point of maximum average total cost.
C
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A country's labor demand curve shifted to the right after the adoption of a new technology. This implies that the use of the new technology ________, assuming all else equal
A) reduced the marginal product of labor B) lowered the minimum wage that firms need to pay C) increased the minimum wage that firms need to pay D) increased the marginal product of labor
A change in government spending has a larger effect on income the
a. larger the elasticity of money demand. b. smaller the elasticity of money demand. c. steeper the LM curve. d. flatter the LM curve.
Majority-rule voting leads to logrolling.
Answer the following statement true (T) or false (F)
From these figures we can conclude that
A. China has a comparative advantage in rice.
B. China has a comparative advantage in radios.
C. the United States has a comparative advantage in radios.
D. neither has a comparative advantage in these two goods.